Armatura S.A.

Interim / Quarterly Report • Aug 19, 2025

ARMĀTURA SA

INDIVIDUAL FINANCIAL STATEMENTS FOR THE SEMESTER ENDED JUNE 30, 2025

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED BY THE EUROPEAN UNION

ARMATURA

CONTENTS

PAGE

FINANCIAL POSITION SITILATION	3 - 4
STATEMENT OF INCOME AND EXPENDITURES	5
SITUATION OF THE GLOBAL RESULT	6
STATEMENT OF CHANGES IN EQUITY
CASH FLOW SITATEMENTS	8
NOTES TO THE INDIVIDUAL FINANCIAL SITUATIONS	9-73

	Note	January 1 2025	30th of June 2025
Active
Fixed assets
Tangible assets	3	111.785	179.848
Intangible assets	4	0	0
Right to use the leased assets		0	0
Total fixed assets		111.785	179.848
Current assets
Inventories	5	1.422	1.621
Customers and other receivables Cash and equivalents	6	554.756	1.286.037
of cash		6.487.942	6.210.895
Financial assets
short term		0	0
Total current assets		7.044.120	7.498.553
Receivables regarding
deferred profit tax		156.517	156.517
Total active		7.312.422	7.834.919
Equity and liabilities
Social capital	8	18,110,957	18,110,957
reserves		1,304,075	1,304,075
The carried forward result including the result of the period		-12.469.372	-11.991.803
Total equity		6.945.660	7,432,229
Long-term debt
Loans
Debts related to financial leasing Tax liabilities		0	0
put off	7
Suppliers and other debts
Total long-term debt		0	ප

ARMĀTURA SA FINANCIAL POSITION SITUATION ON JUNE 30, 2025 (in lei, unless otherwise specified)

The attached notes are an integral part of these financial statements.

ARMATURA SA FINANCIAL POSITION SITUATION ON JUNE 30, 2025 (in lei, unless otherwise specified)

	Note	January I 2025	30th of June 2025
Current liabilities
Suppliers and other debts	7	182.221	154.465
Settlements with shareholders
looking social capital		100	100
Loans
Debts from operations of leasing Provisions for risks		13.856	140.016
and expenses		170.586	117.109
Total current liabilities		366.762	411.689
Total debts		366.762	411.689
Total equity and liabilities		7.312.422	7.834.919

Administrator.

Drawn up

Ec.Rus Dana

See

The attached notes are an integral part of these financial statements.

• 4 -

ARMĀTURA SA

STATEMENT OF INCOME AND EXPENDITURES FOR THE SEMESTER ENDED ON JUNE 30, 2025 (in lei, unless otherwise specified)

	30th of June 2024	30th of June 2025
Income	942,663	712.425
Other operating revenues	85,943	26.012
Variation in stocks of finished products
and production in progress	0	0
Raw materials and materials	-49,915	-21.742
Cost of goods	-55,252	-11.540
Staff costs	-455,171	-282.274
Utility expenses	-88,249	-74.000
Services provided by third parties	-278,820	-408.345
Amortization and depreciation
fixed assets	-387,871	-137.011
The net movement in the provision for other
risks and expenses	-52,840	53.477
Other operating expenses	-14,796	-16.896
Other income / (losses), net	46,881	-47.028
Operational result	-922,467	-206.921
Financial income	114,009	102.459
Financial expenses	-6,833	-449
net financial profit	107,176	-102.010
Profit/Loss before tax	-214,840	-104,912
Income / (Expense) with profit tax current and deferred		-2.212
Net profit / loss for the exercise	-214,840	-107,124
Number of shares issued	40,000,000	40,000,000
Basic and diluted earnings per share	-0.005371	-0.002678

The attached notes are an integral part of these financial statements.

ARMATURA SA

SITUATION OF THE GLOBAL RESULT FOR THE SEMESTER ENDED ON JUNE 30, 2025 (in lei, unless otherwise specified)

	30th of June 2025	30th of June 2025
Profit/Loss related to the exercise	-214.840	-107.124
Other elements of the overall result:
Gain/(Loss) on revaluation the buildings Deferred tax impact on
Reserves from revaluation
Other elements of the overall result related to the year, net of tax
Total global result related to the exercise	-214-840	-107.124

Administrator,

Drawn up

Ec.Rus Dana

The attached notes are an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY FOR THE SEMESTER ENDED JUNE 30, 2025 ARMĀTURA SA

(in lei, unless otherwise specified)

	CAPITAL SOCIAL	REVALUATION RESERVES IN	RESERVES OTHER	REPORT RESULT ED -	TOTAL.
Balance on January 1, 2025	18,110,957		1,304,075	-12.469.372	6.945.660
Profit / (Loss) for the vear				107.124	-107.124
Overall overall result Other elements of the result				584.693	-584.693
Balance on June 30. 2025	18,110,957		1,304.075	477.569	477.569
				-11.991.803	7.432.229

Administratory Stefan Bygday

Pers Ec. Rus Dana Drawn up

The attached notes are an integral part of these financial statements.

ARMĀTURA SA INDIVIDUAL CASH FLOW STATEMENT FOR THE SEMESTER ENDED JUNE 30, 2025 (in lei, unless otherwise specified)

	30th of June 2024	30th of June 2025
Cash flows from activities
exploitation
Cash generated from operations	-888,266	-174.168
Interest paid		-420
Net cash generated from operating activities	-888,265	-174.588
Cash flows from investment activities
Purchases of tangible assets	【】	()
Net proceeds from the sale of
tangible assets	()	0
Interest received	113,979	102.459
Net cash used in investment activities	113,979	-102.459
Cash flows from financing activities
Repayments of leasing loans	()	్రీ
Settlements from
associates Lease interest	ు	( )
payments
Net cash used in financing activities		்
The net change in cash and cash equivalents
	-1,002,162	-277.047
Cash and cash equivalents
at the beginning of the year
	7,439,622	6.487.942
Increases / - Decreases	-1,002,162
		-277.047
Cash and cash equivalents
at the end of the semester	6,437,460	6.210.895

Administrator, Stefan Boydan

Drawn up

Ec.Rus Dana lea

The attached notes are an integral part of these financial statements.

.

1 GENERAL INFORMATION

ARMATURA SA (the "Company") was registered at the beginning of 1991 at the Cluj Trade Registry as a joint-stock company, and at the end of 1996 it completed the privatization process, being currently a company with full private capital. The company has its headquarters in Cluj Napoca, Street Garii, no. 19, where it also carries out its production activity.

The company's object of activity is "Manufacturing of faucets", CAEN code 2814 and operates in the field of metal fittings with an experience in the production of fittings for thermal installations and water and gas supply, including today in the product portfolio over 1,500 dimensional items. The Company's clients are national and international companies.

The Company's shares have been listed in the standard category of the Bucharest Stock Exchange since 1997, and in 2025 the main shareholder is HERZ ARMATUREN Ges.mbH Austria.

The company has no open branches, is not in association with other companies and does not hold participation titles.

The company has subscribed and paid-up capital in the amount of 4,000,000 lei consisting of 40,000,000 shares with a nominal value of 0.1 lei per share.

Starting with the year 2021, when the Company carries out the activity of sub-leasing the spaces, this risk is no longer applicable, the customers being mainly internal.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The main accounting policies applied to the preparation of these financial statements are presented below. These policies have been applied consistently in all years presented, unless otherwise specified.

2.1 The basis of the preparation

The financial statements of the Company were drawn up in accordance with the provisions of the Order of the Minister of Public Finance no. 2844/2016, for the approval of the Accounting Regulations compliant with the International Financial Reporting Standards, applicable to commercial companies whose securities are admitted to trading on a regulated market, with subsequent amendments and clarifications.

These provisions correspond to the requirements of the International Financial Reporting Standards (IFRS), adoped by the European Union (EU). The effects of changes in exchange rates, regarding the functional currency. For the purpose of preparing these financial statements in accordance with the legislative requirements in Romania, the functional currency of the Company is considered to be RON ("Romanian leu").

ARMĀTURA SA NOTES TO THE INDIVIDUAL FINANCIAL SITUATIONS FOR THE SEMESTER ENDING JUNE 30, 2025 (in lei, unless otherwise specified)

For the year ended on December 31, 2011 and for all previous financial years, the Company prepared the financial statements in accordance with the Romanian accounting regulations (local accounting principles) represented by OMF 3055/2009 for the years 2011 and 2010. On December 31, 2012, the Company prepared the first set of financial statements according to IFRS adopted by the EU.

The precaration of financial statements in accordance with IFRS requires the use of critical accounting estimates. It also requests management to use judgment in the process of applying the Company's accounting policies. The areas that involve a higher degree of complexity and application of these in which as umptions and estimates have a significant impact on the financial statements are presented in note 4

2.1.2 New accounting regulations

The following amendments to existing standards and new interpretations issued by the International Accounting Standards Board (IASB) and adopted by the EU are in force for the current period:

Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures- Reform of the benchmark interest rate - Phase 2. They were adopted by the EU on 15 January 2020, and are applicable for periods starting on or after 1 January 2021.

Amendments to IFRS 4 Insurance contracts - Extension of the temporary exemption from the application of IFRS

1. The expiry date of the temporary exemption from applying IFRS 9 has been extended for annual periods beginning on or after 1 January 2025.

Amend ments to IFRS 16 Leases Adoptedof the EU on August 30, 2021 and are applicable after June 30, 2021.

Starting with January 1, 2018, the Company applied the IFRS 15 Revenue from contracts with customers standard. IFRS 15 establishes a five-stage model that will be applied for the recognition of revenues from a contract concluded with a customer (with limited exceptions), regardless of the type of transaction or industry.

Also, the requirements of the standard will apply for the recognition and evaluation of gains and losses from the sale of certain assets of a different nature than the operational one that are not the entity's usual activity (e.g.: sale of tangible assets). The presentation will be provided extensive information, including disaggregation of total income, information about performance obligations, changes in the contractual balances of assets and liabilities accounts between periods and key ratios and estimates.

ARMATURA SA NOTES TO THE INDIVIDUAL FINANCIAL SITUATIONS FOR THE SEMESTER ENDING JUNE 30, 2025 (in lei, unless otherwise specified)

The societyobtained income from renting some spaces to other commercial companies until the date of sale buildings, and revenues are measured at the fair value of the net collected amounts. The income obtained from renting the premises is recognized when there is an obligation to register a contract, respectively if the following conditions have been met:

• The parties to the contract have approved the contract in writing

• The company can identify the rights of each party regarding the services that will be transferred

• The company can identify the payment terms for rent

• The contract has commercial content

• As of 30.06.2025, the company has a number of 36 tenants

• The company extended the contracts for an indefinite period

• The company charges a reasonable level of rent.

Based on the internal evaluation of the possible impact resulting from the application of IFRS 15, we consider that the continuity of the activity supported by the two aspects mentioned above is clear, namely the increase in the number of tenants and the extension of their existing contracts; no significant effect was identified in these financial statements.

New standards, amendments and interpretations issued by the IASB and adopted by the EU, but not applicable for the firancial year ending on June 30, 2025, therefore not adopted:

Amendments to IFRS 3 Business Combinations; IAS 16 Tangible assets; IAS 37 Provisions, contingent liabilities and contingent assets; and 2018-2020 Annual Improvements(all issued on 14 May 2020) - applicable for periods beginning on or after 1 January 2022.

IFRS 17 Insurance contracts(issued on May 18, 2017); including Amendments to IFRS 17 (issued on 25 June 2020) - applicable for periods beginning on or after 1 January 2025.

Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Acceunting Estimates(published 12 February 2021) - applicable for periods beginning on or after 1 January 2025.

Amendments to IAS 1 Presentation of financial statements and Statement of Practice 2 IFRS: Amending of accounting policies(published 12 February 2021) - applicable for periods beginning on or after 1 January 2021.

The Company anticipates that the adoption of these standards and amendments to the existing standards will not have a significant impact on the Company's financial statements during the period of initial application. There are no other IFRS or IRIC implementations that have not come into force yet and that could have a significant impact on the Company's financial statements

2.2 Segment reporting

A segment is a distinct component of the Company that provides certain products or services (activity segment) or provides products and services in a specific geographic environment (geographic segment) and which is subject to risks and benefits different from those of the other segments. From the point of view of the activity segments, the Company does not identify distinct components from the point of view of risks and benefits

IFRS 8 Business segments must be applied to the Company's Financial Statements because its equity instruments are traded on a public market (BVB).

The presentation of information regarding the products and services, as well as the geographical areas in which the company operates is mandatory, even for those entities that identify a single reportable activity segment, taking into account the quantitative thresholds and the aggregation criteria provided by the standard. Taking into account the quantitative thresholds and the aggregation criteria provided by the standard, from the point of view of the activity segments, the Company does not identify distinct components from the perspective of associated risks and benefits.

2.3 Foreign currency conversion

(a) Functional and presentation currency

The financial statements are presented in lei (RON), the national currency of Romania. The company keeps accounting records in lei, prepares and presents its financial statements in accordance with the specific legislation on the subject and with the Regulations on accounting and financial-accounting reports issued by the Ministry of Public Finance

(b) Transactions and balances

Transactions in foreign currency are converted into functional currency using the exchange rate valid on the date of the transactions. The gains and losses resulting from exchange rate differences following the conclusion of these transactions and from the conversion at the financial year, at the year-end exchange rate of monetary assets and liabilities denominated in foreign currency are reflected in the profit and loss account.

Exchange rate gains and losses relating to borrowings and cash equivalents are presented in the income statement under 'financial income or expenses'. All other exchange rate gains and losses are presented in the profit and loss account under "other (losses)/gains - net".

Monetary assets and liabilities denominated in foreign currency are expressed in lei at the balance sheet date. Or January 1, 2025, the exchange rate used to convert foreign currency balances is 1 EUR = 4.9741 RON (30 June 2025 1 EUR = 5.0777 RON). Gains and losses resulting from the conversion of monetary assets and liabilities are reflected in the profit and loss account during the year.

2.4 Accounting for the effects of hyperinflation

The Romanian economy went through periods of relatively high inflation and was considered hyperinflationary according to IAS 29 "Financial reporting in hyperinflationary economies" ("IAS 29").

IAS 29 requires that financial statements drawn up in the currency of a hyperinflationary economy be restated in terms of purchasing power as of the balance sheet date. The amounts expressed in terms of purchasing power on December 31, 2004 (the date of cessation of hyperinflation) are treated as the basis for the accounting values in these financial statements.

The company decided to reflect the impact of the application of IAS 29 in the financial statements drawn up on December 31, 2012. The impact of these adjustments was reflected on the value of the land, the share capital and the retained earnings.

2.5 Tangible assets

Decreases that compensate for increases related to the same asset are recorded alongside other reserves directly in equity; all other reductions are recorded in the profit and loss account. Amounts recorded in revaluation reserves are transferred to retained earnings when the asset is derecognised.

Repair and maintenance expenses are recorded in the statement of income and expenses in the financial period in which they are made. The costs of replacing major components of property, plant and equipment are capitalized and the replaced components are retired.

Gains and losses on disposals determined by comparing receipts with book values are recognized in profit or loss.

The residual value of an asset is the estimated value that could be obtained by the Company from the sale of the respective asset minus the estimated costs of the sale, if the asset is already old and corresponds to of the conditions related to the end of its useful life. The residual value of an asset is zero if the Company estimates the use of the asset until the end of its physical life. Asset residual values and useful lives are reviewed, and adjusted accordingly, at each balance sheet date.

Gains and losses from the sale are determined by comparing the amounts obtained from the sale with the accounting value, and are recognized under "Other (losses)/net gains" in the statement of income and expenses.

When salling revalued assets, the amounts included in other reserves are transferred to retained earnings.

2.6 Intangible assets

Computer programs

Purchased licenses related to the rights to use computer programs are capitalized based on the costs recorded with the purchase and commissioning of the respective computer programs. These costs are amortized over their estimated useful life (three years). The costs related to the development or maintenance of computer programs are recognized as expenses in the period in which they are carried out.

The costs related to the development or maintenance of computer programs are recognized as expenses in the period in which they are carried out.

Other intangible assets

Under other intangible assets are registered the computer programs created by the entity or purchased from third parties for its own use needs, as well as other intangible assets owned by the Company.

Expenditures that allow intangible assets to generate future economic benefits beyond the initially foreseen performance are added to their original cost. These expenses are capitalized as intangible assets, if they are not an integral part of tangible assets.

2.7 Impairment of non-financial assets

Assets subject to depreciation are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may no longer be recoverable. The impairment loss is represented by the difference between the accounting value and the recoverable value of the respective asset. The recoverable amount is the maximum between the fair value of the asset less costs to sell and the value in use.

2.8 Financial Assets

Loans and receivables

Classification

Loans and receivables are non-derivative financial assets with fixed or determinable payments and which are not quoted on an active market. They are included in current assets, except for those that have a maturity period of more than 12 months from the date of the balance sheet. They are classified as fixed assets.

Recognition and evaluation

Regular purchases and sales of financial assets are recognized on the transaction date - the date on which the Company undertakes to buy or sell the respective asset.

Financial assets cease to be recognized when the right to collect cash flows from investments expires or is transferred, and the Company transfers all the risks and benefits related to the right of ownership.

Loans and receivables are recorded at amortized cost based on the effective interest method. The Company's loans and receivables are classified as "cash and cash equivalents", respectively as "customers and other receivables" in the balance sheet.

2.9 Clearing of financial instruments

Financial assets and liabilities are offset and the net value is reported in the balance sheet only when there is an applicable legal right to offset the recognized amounts and there is an intention to offset on a net basis or to realize the asset and offset the liability at the same time.

2.10 Inventories

As of 30.06.2025, the company holds stocks of materials, finished products in value of 1.621 lei

2.11 Trade receivables

Receivables are recorded at nominal value minus adjustments for their depreciation.

Trade receivables are amounts owed by customers for products, goods sold or services rendered in the normal course of business.

The provision for the depreciation of commercial receivables is established when there is objective evidence that the Company will not be able to collect all the amounts owed to it according to the initial conditions of the receivables. The significant difficulties faced by the debtor, the probability that the debtor enters bankruptcy or financial reorganization proceedings, non-payment or non-compliance with payment conditions are considered indicators of the impairment of trade receivables.

The accounting value of the asset is reduced by using a provision account, and the amount of the loss is recognized in the statement of income and expenses under "other gains/(losses) - net" in the profit and loss account and

loss. When a trade receivable cannot be recovered, it is expensed, with the corresponding reversal of the provision for trade receivables. Subsequent recoveries of amounts

previously amortized are credited to the profit and loss account.

2.12 Cash and cash equivalents

For the cash flow statement, cash and cash equivalents include cash on hand, bank accounts, bank demand deposits, other short-term financial investments, overdraft facilities, and the short-term portion of restricted bank accounts.

2.13 Share capital and reserves

The social capital composed of common shares is registered at the value established on the basis of the articles of incorporation and additional documents, as the case may be, as well as the supporting documents regarding the capital payments.

Own shares redeemed, according to the law, are presented in the statement of assets, liabilities and equity as a correction of equity.

Gains or losses related to the issuance, redemption, sale, free transfer or cancellation of the entity's equity instruments are recognized directly in the "Gains / or Losses related to equity instruments" lines.

2.14 Trade debts

Trade payables are recognized at fair value.

Trade payables are obligations to pay for goods or services that were purchased in the normal course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less than one year (or later in the normal course of business). Otherwise, they will be presented as long-term liabilities.

2.15 Loans

On 30.06.2025, the company no longer holds loans

2.16 Uncertain fiscal positions

The uncertain fiscal positions of the Company are analyzed by the management at each balance sheet date. Llabilities are recorded for tax positions for which management believes that additional taxes are likely to be applied if these positions were to be audited by the tax authorities. The assessment is based on the interpretation of the tax laws that were adopted at the balance sheet date. Liabilities related to penalties, interest and taxes, other than income tax, are recognized based on management's best estimates necessary to settle the obligations at the balance sheet date.

2.17 Employee benefits

During the financial year, the Company makes payments to the Social Insurance budget on behalf of its employees, because they are all included in the public pension system.

The societydoes not contribute to any other pension plan or post-retirement benefits and does not have any other obligations of the kind mentioned, for its employees.

Benefits upon termination of employment

In the collective labor contract of the Company, valid for the previous period, it was stipulated that the Company's employees receive, on the occasion of retirement, a prize equivalent to one/two basic salaries earned in the month preceding retirement. The company made an estimate of the updated value of this promised benefit, in order to establish the necessary provision, but which did not materialize because it was not considered that it would have a significant impact on the financial statements.

Also, in the collective labor contract of the Company, valid for the previous period, it was stipulated that the Company's employees receive compensatory payments in case of termination of the individual labor contract for reasons related to the Company.

Considering the situation generated by Covid-19 within the Company, the following decisions were issued in order to prevent the damage to the good development of the activity:

By Decision no. 20/01.09.2020, people in the vicinity of those infected with Covid-19 have benefited from the settlement of the Covid-19 test by the unit.

As an additional protection measure for employees, in some cases the modification of the employment contract was chosen, in an employment contract with a telework clause.

The employees were permanently informed about the legislative changes and updates brought to the areas affected by Covid-19.

2.18 Revenue recognition

Revenues are recorded when the significant risks and benefits of ownership of the goods are transferred to the customer. The amounts representing the income do not include the sales tax (VAT), but they include the commercial discounts granted. Financial discounts granted to customers (discounts) reduce the value of the Company's revenues.

The Company recognizes revenues when their value can be reliably estimated, when it is likely to produce future economic benefits for the entity, and when specific criteria have been met for each of the Company's activities as described below.

The amount of revenue is not considered reliably assessable until all sales contingencies have been resolved. The company bases its estimates on historical results, taking into account the type of client, the type of transaction and the specific elements of each contract.

Revenues from the provision of services are recognized in which they were provided and in correspondence with the stage of execution.

Interest income is recognized periodically, proportionally, as the respective income is generated, based on accrual accounting.

Revenues from the collection of rents and/or rights to use assets are recognized based on accrual accounting, according to the contract.

Dividends distributed to shareholders, proposed or declared after the date of the financial statements, are recognized as dividend income when the shareholder's right to collect them is established.

contracts of leasing 2.19

Leasing is a contract, or part of a contract, that grants the company the right to use an asset (the underly ing asset) for a certain period of time in exchange for a consideration. The company, as lessee, antains the right to use a support asset for a certain period of time in exchange for a consideration.

At the start date of development, the Company evaluates the asset related to the right of use

at cost. The cost of the asset related to the right of use includes:

-The value of the initial assessment of the debt arising from the leasing contract

-Any leasing payment made on or before the start date, minus any leasing incentives received.

• Any initial direct costs borne by the company;

• An estimate of the costs to be borne by the company as lessee for the dismantling and removal of the supporting asset, for the restoration of the place where it is located or for bringing the supporting asset to the condition imposed by the terms and conditions of the leasing contract, with except for the case in which these costs are borne for the production of stocks.

The lessee assumes the obligation towards these costs either at the development, or as a result of the use of the supporting asset during a certain period.

The company will choose not to apply the provisions of IFRS16 for short-term leasing contracts (<12 months) and for leasing contracts for which the underlying asset has a low value.

Depreciation of the supporting asset is determined as follows:

• If at the end of the leasing contract the ownership is transferred, then depreciation will be recognized as an expense during the useful life of the asset

-Otherwise, depreciation will be recognized on the shortest period between the useful life of the asset and the period of the leasing contract.

In the first semester of 2025, the company had an operational leasing contract in progress for which it recorded an intangible asset related to the right to use the leased asset, namely buildings.

STATEMENTS FOR THE SEMESTER ENDED JUNE NOTES TO THE INDIVIDUAL FINANCIAL ARMĀTURA SA 30, 2025

(in lei, unless otherwise specified)

CORPORATE FIXED ASSETS 3

	Lands and buildings	Vehicles and machinery	equipment	Furniture,s Assets under upplies and construction	Real estate investments	Total
Financial exercise
Initial net book value on January 1, 2025	0	109.737	41			117,598
I ransters	-	्र -
inputs	-
outputs	-	4.614				4.614
Depreciation expense	【	-1.148.587	-21.931			-1.170.518
Surplus from revaluation in capitals		-8.788	-804			-9.592
own	1
Reduction from revaluation in the		1.096.944	21.931			1.118.875
income statement
and expenses	-
Transters
	ા
Final net book value on June 30, 2025	0	53.920	1.245			55.165
Cost or valuation	0	1.092.418	30.583			1.123.001
Accumulated depreciation	0	-1.038.498	-29.337			-1.067.835
Net book value	0	53.920	1.245			55.165

(in lei, unless otherwise specified)

INTANGIBLE ASSETS

4

	Leasing financial	Advances and other ASSETS	Total
Financial year on January 1, 2025 Initial balance Depreciation expense	2.206.792 2.334.212	268.978 268.978	2.727.873 2.603.190
ir puts	252.103
o itputs		1.812	1.812
Transfers		1.812	1.812
Final balance on 30 June 2025	124.683	0	124.683
Cost	2.458.895	267.165	2.726.060
A ccumulated depreciation	2.334.212	267.165	2.601.378
Net book value	124.683	0	124.683

5 STOCKS

	January 1	30th of June
	2025	2025
Raw materials and materials	0	0
Provisions for raw materials and materials	0	0
Production in progress	0	0
Provisions for products in progress	0	0
commodities	0	0
Provisions for goods	0	0
Finished product	0	0
Provisions for finished products	0	0
Other stocks	1422	1621
Provisions for other stocks	0	0
Total	1422	1621

ARMĀTURA SA NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS FOR THE SEMESTER ENDED JUNE 30, 2025 (in lei, unless otherwise specified)

6 CUSTOMERS AND OTHER CLAIMS

	January 1 2025	30th of June 2025
		1.359.408
Trade receivables	1.242.256
Minus: adjustment for the impairment of receivables		-807.646
trader	-802.073
Trade receivables - net	434.610	551.762
- of which in relation to related parties	0	0
		597.049
VAT to be collected	0
Prepayments	13.310	66.996
Advances to suppliers	45.809	30.143
Minus: provision for depreciation of advances
Different debitors	48.900	30.800
Other claims	168.643	165.804
The current portion of the receivables
commercial and other receivables	711.273	1.422.554
7 SUPPLIERS AND OTHER LIABILITIES
	January 1 2025	30th of June 2025
Trade debts	182.221	154.465
- of which in relation to the affiliated parties	0	0
Personal debts, contributions, social security	66.293	36.430
Value added tax	9.907	202

Corporate tax liabilities Other debts

Minus the long-term portion: =

The current portion of commercial and other debts LIABILITIES

108.341

366.762

366.762

0

220.592

411.689

=

411.689

(in lei, unless otherwise specified)

8 SOCIAL CAPITAL

The value of the subscribed capital on June 30, 2025 was 4,000.000 lei (December 31. 2025: 4.000,000 lei) representing 40,000.000 shares. All shares have the same voting rights. have a nominal value of 0.1 lei/share and are traded at BVB standard category

According to the data provided by the Central Depository, the sharcholder structure on June 30. 2025 is presented as follows:

	Number of actions (pc)	The amount (lei)	Percentage (%)
Herz Armaturen Ges.MBH	21,292,448	2.129.245	53.2311
Herz Armaturen loc. Vienna AUT	13,197,352	1.319.735	32.9934
Individuals Legal persons	5.008.900 501,300	500.890 50. 130	12.5223 1.2533
TOTAL	40.000.000	4,000,000	100.0000

THE RUSSIAN-UKRAINIAN MILITARY CONFLICT

In the context of the invasion of Ukraine by the Russian Federation, our company has no direct exposure to Russia or Ukraine, nor does it have any customers, suppliers or operations in these countries. Our company closely monitors the events inside Ukraine, and the outbreak of this war naturally generated an important stock market correction that spread globally. At the time of drawing up these financial statements, the company is not in a position to reliably estimate the impact, because events are constantly changing from one day to the next

Administrator.

Drawn up

Ec.Rus Dana

Half-year report 2025

SEMESTER REPORT 2025 SC ARMARTURA SA CLUJ- NAPOCA

Social headquarters:

400267 Cluj-Napoca Str. Stations No. 19 0371 784 884 0371 784 881 office@armatura.ro www.armatura.ro

Phone: Fax: E-mail: Website:

Unique registration code: Registered business number: Subscribed and paid-up capital:

RO 199001 J12/13/1991 4,000,000 RON

The regulated market on which the issued securities are traded:

SC ARMATURA SA shares are traded in the standard category of the Bucharest Stock Exchange.

The main characteristics of the securities issued by the company:

• Number of shares: 40,000,000
• Nominal value: 0.1 RON/share
• Actions nominatives, issued in dematerialized form, registered in the independent registry SC Depozitarul Central SA, according to contract no. 1958 of 19.01.2007

Report date: 07.08.2025

• * drawn up according to Regulation no. 5/2018 of the Financial Supervision Authority.

• * The financial statements from 30.06.2025 have not been audited.

• Economic and financial situation:

The financial statements were prepared in accordance with the International Financial Reporting Standards.

Half-year report 2025

	THE SITUATION OF THE FINANCIAL POSITION
		January 1	30th of June
		2025	2025
Active
Fixed assets
	Tangible assets	111.785	179.848 0
	Intangible assets	0
	Right to use the leased assets
	Total fixed assets	111.785	179.848
	Current assets
Inventories		1.422	1.621
	Customers and other receivables	554.756	1.286.037
	Cash and equivalents
of cash		6.487.942	6.210.895
	Financial assets
short term		0	0
		7.044.120	7.498.553
	Total current assets
	Receivables regarding
	deferred profit tax	156.517	156.517
	Total active	7.312.422	7.834.919
	Equity and liabilities
	Social capital	18.110.957	18.110.957
reserves		1.304.075	1.304.075
	The carried forward result including the	-12.469.372	-11.884.522
	result of the period
	Total equity	6.945.660	7.432.229
	Long term debt
Loans	Debts related to financial leasing
	Tax liabilities
put off
	Suppliers and other debts
	Total long-term debt

Current liabilities

Suppliers and other debts	170.205	154.465
Settle nents with shareholders regarding social capital	100	100
Loans
Debts from leasing operations	13.856	140.016
Provisions for risks and expenses	170.586	117.109
Total current liabilities	366.762	411.689
Total debts	366.762	411.689
Total equity and liabilities	7.312.422	7.843.919

STOCK ANALYSIS

	January 1 2025	30th of June 2025
Raw naterials and materials	0	0
Provisions for raw materials and
materials	0	0
Production in progress	0	0
Provisions for products in progress	0	0
commodities	0	0
Provisions for goods	0	0
Finished product	0	0
Provisions for finished products	0	0
Other stocks	1422	1621
Provisions for other stocks	0	0
Total	1422	1621

Half-year report 2025

ANALYSIS OF CLAIMS

On 30.06.2025, the company's receivables had the following structure:

	January 1	30th of June
	2025	2025
Trade receivables		1.359.408
	1.242.256
Minus: provision for the depreciation of receivables		-807.646
trader	-802.073
Trade receivables - net	434.610	551.762
- of which in relation to related parties	0	0
VAT to be collected
		597.049
Prepay nents	13.310	66.996
Advances to suppliers	45.809	30.143
Minus: provision for depreciation of advances
Different debitors	48.900	30.800
Other claims	168.643	165.804
The current portion of the receivables
commercial and other receivables	711.273	1.442.55

The company's trade receivables as of 30.06.2025 registered an increase of 731.281 lei compared to those existing in the balance at the beginning of 2025, respectively a percentage increase of 50.69%.

ANALYSIS OF PAYMENT OBLIGATIONS

	January 1 2025	30th of June 2025
Trade debts	182.221	154.465
- of which in relation to related parties	0	0
Debts with the staff, contributions, social insurance	66.293	36.430
Corporate tax liabilities		0
Other debts	118.248	220.592
	366 762	411.689

The current liabilities of the company registered a increse in the amount of 44.927 lei compared to the beginning of 2025.

Half-year report 2025

INCOME AND EXPENDITURE SITUATION

	30th of June 2025	30th of June 2025
Income	942.663	712.425
Other operating revenues	85.943	26.012
Variation in stocks of finished products
and production in progress	0	0
Raw materials and materials	-49.915	-21.742
Cost of goods	-55,252	-11.540
Staff costs	-455,171	-282-274
Utility expenses	-88,249	-74.000
Services provided by third parties	-278,820	-408.345
Amortization and depreciation
fixed assets	-387,871	-137.011
The net movement in the provision for other
risks and expenses	-52,840	53.477
Other operating expenses	-14.796	-16,896
Other income / (losses), net	56.881	-47.028
Operational result	-922,467	-206.921
Financial income	114.009	102.459
Financial expenses	-6.833	-449
Net Financial Profit/Loss	107,176	102.010
Profit/Loss before tax	-214,840	-104.912
Income / (Expense) with profit tax current and deferred		-2.212
Net profit / loss for the exercise	-214,840	-107.124

Half-year report 2025

2. Analysis of the activity of the commercial company

The Company's management monitors the forecasts regarding the Company's liquidity needs, to ensure that there is sufficient cash to meet operational requirements. These forecasts take into account the Company's debt financing plans, compliance with agreements, compliance with internal objectives regarding the indicators in the balance sheet

2.2. Corporate governance:

The company has shares listed at BVB Bucharest. As a result, the company applies all the legal provisions in force: I he company has shares motor of Accounting Regulations according to hits according to International of According DVD Financial Reporting Standards, ASF regulation 05 / 2018 on reporting, law 297/2004 on the capital market, BVB regulations and other. All these documents are public. Until the date of this report, the Company has not adhered to Togulations and othernance Code issued by the Bucharest Stock Exchange in 2015. The Company has implemented an Organization and Functioning Regulation as well as an Internal Order Regulation that are intended to ensure and organization and Functioning colgafety and to contribute to the fulfillment of the company's objectives. The internal control system fulfills its proposed objectives and no significant deficiencies were found in the functions with the ner collife system. The principles of the implemented internal control system are the separation of decisions, the existence of automatic controls incorporated in the IT application limits, periodic reports, etc. The company has appointed an internal auditor but not an audit committee. There is no separate investor relations department. The company has a contract with an authorized financial auditor, according to legal requirements, who requirements, who requirements, who requirements, who result department. Financial statements according to the legal provisions in force. The General Assembly has the of the of vermided by Law 31/1990 with related amendments and by the company's constitutive act in force on the date of the provied of Law 3171770 whanner of conducting the general meeting of shareholders and its key adtributions are in new gelleral assembly I the mainter of conduciting open the rights of the shareholders and how they can be exercised are provided in the applicable legislation.

Board of Directors component:

• Stefan Bogdan President of the Board of Administration
• Damir Rutar member -
• Zoran Bankovic member -
• Walter Simmel member

Half-year report 2025

3. Tangible assets of the company

3.1. Specifying the location and characteristics of the main production capacities owned by the company.

The equipment and production facilities owned by the company are located, in their entirety, in Cluj-Napoca, strada Garii no. 19.

Administrator,

Drawn up

Ec.Rus Dana

ten

Stefan Bogdan

S.C. ARMATURA S.A. 400267 Cluj-Napoca, str. Gärii nr. 19 Tel: +40 264 435 387, Fax: +40 264 435 368 E-mail: office@armatura.ro, web: www.armatura.ro

Statement

In accordance with Art. 30 of the Accounting Law no. 82/1991

The semi-annual financial statements from 30.06.2025 were prepared for: SC Armatura SA. County: 12 - Cluj Address: Cluj Napoca, Str. Stations, No. 19 Trade Register number: J12/13/1991 Form of ownership: 34 - Joint-stock companies Main activity (CAEN code and class name): 2814 - Manufacture of faucers Fiscal identification code: RO 199001

The undersigned Stefan Bogdan, as Administrator of SC Armatura SA, assumes responsibility for the preparation of the half-yearly financial statements from 30.06.2025 and confirms that:

• a) The individual financial statements as of 30.06.2025 were drawn up in accordance with International Financial Reporting Standards (IFRS) and OMF 2844/2016.
• b) The accounting policies used to prepare the half-yearly financial statements are in accordance with the applicable accounting regulations.
• c) The half-yearly financial statements provide a true picture of the financial position. financial performance and other information related to the activity carried out.
• d) The legal entity carries out its activity under conditions of continuity.

Signatures.